North Carolina is the latest state making legislative moves in hopes of expanding the pipeline of licensed accountants.
A new Accounting Workforce Development Act (SB321) was filed in the North Carolina General Assembly, offering an additional pathway to CPA licensure. The bill, backed by the North Carolina Association of CPAs, would allow CPA candidates to become licensed with a bachelor's degree in accounting, two years of relevant work experience and successful completion of the Uniform CPA Exam.
"North Carolina businesses, government agencies, and nonprofit organizations depend on a strong pipeline of CPAs to support financial operations, ensure compliance, and uphold fiscal accountability," said NCACPA CEO Mark Soticheck in a statement Wednesday. "With the increasing demand for CPAs and the declining number of new entrants to the profession, this legislation provides an innovative workforce solution that meets industry needs while maintaining the rigor and integrity of the CPA profession."
The North Carolina General Assembly building
The American Institute of CPAs estimates 75% of CPAs currently in public accounting firms will retire within the next 15 years, spurring moves to develop policies that encourage new talent to enter the profession. The Accounting Workforce Development Act seeks to modernize CPA licensure by providing an additional experience-based pathway, so North Carolina can stay competitive in attracting and retaining accounting talent.
"This bill provides an alternative, not a replacement," said Robert Broome, NCACPA's vice president of advocacy and outreach, in a statement. "It creates a licensure option that values both education and real-world experience, making the profession more accessible while upholding the rigorous standards that define CPAs."
Other states have also been making moves to streamline the licensure process. Both Ohio and Virginia have recently approved changes, and other parts of the country are looking to provide alternatives to the traditional 150-credit-hour rule for CPA licensure, including Minnesota and Florida. Last week, leaders of six state CPA societies in California, Florida, Illinois, New York, Pennsylvania and Texas co-authored an article in an effort to clear up misconceptions about the 150-hour rule and the proposed alternatives.
To preserve mobility of CPA licensing across state lines, the AICPA and the National Association of State Boards of Accountancy are asking for comments on their proposal for an additional pathway to CPA licensure through changes in the Uniform Accountancy Act model legislation used in states. They proposed an alternative pathway to CPA licensure last month and UAA changes last September.
Big Four firms EY and Deloitte, as well as accounting automation solutions provider Digits, all announced separate partnerships with technology company Nvidia.
